According To The Increase In Credit Distribution, The Boss Of LPS Calls Banking Intermediation To Improve

Chairman of LPS Purbaya Sadive (Photo: Doc. Antara)

JAKARTA - The banking intermediation function continues to improve. This is in line with the national economic recovery.

Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive said this can be seen by credit distribution growing by 11.35 percent in December 2022 when compared to the same period the previous year (year on year/yoy). Meanwhile, third party funds (DPK) grew by around 9.01 percent (yoy).

"This shows that funds in the banking system are gradually channeled into the real sector," Purbaya said quoting Antara, Saturday, February 18.

Based on this data, in 2023 it estimates credit can grow in the range of 10-12 percent. Meanwhile, DPK can grow in the range of 7.5-9.5 percent.

In addition, Purbaya said the national banking industry is still in a stable condition, where the national bank's capital position is at 25.68 percent as of December 2022.

Bank liquidity conditions are currently in a very sufficient condition (ample). The ratio of liquid assets to non-core deposits (AL/NCD) and liquid assets to third party funds (AL/DPK) as of December 2022 was 137.67 percent and 31.2 percent, respectively.

"This situation makes our banking in a very adequate condition to expand credit while maintaining capital from global uncertainty," he said.

He said that the financial sector, especially the function of banking intermediation, must be able to encourage the real sector to grow faster so as to support economic growth.

According to him, the creation of liquidity needs to be encouraged to be faster so that it can become a catalyst for economic growth.

"We at the Financial System Stability Committee (KSSK) also always work together through their respective duties and responsibilities so that our economy is able to continue to grow well and the stability of the financial system is maintained," he said.